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3Commas on ‘heightened alert’ after several user accounts hacked

The firm has implemented additional security measures following an investigation that found “only a few” 3Commas user accounts were compromised.

Crypto trading bot provider 3Commas is on “heightened alert” after some of its user’s accounts were compromised and used to place trades.

An Oct. 8 blog post from 3Commas co-founder and CEO Yuriy Sorokin said it received reports from users concerning unauthorized trades on their accounts after resetting their passwords.

An investigation found “only a few customer accounts” were compromised and unauthorized trades made. 3Commas did not disclose the number of users affected.

“We will continue with our investigation into this matter,” Sorokin wrote. “Please note, however, that in the meantime, our services are running normally, and we will continue to operate in a state of heightened alert.”

The accounts with unauthorized trades mostly had not enabled two-factor authentication (2FA), according to 3Commas. It said the data accessed did not include user API data or passwords.

As additional security measures, the firm said it implemented a new approach to resetting passwords and disabled API connections after a user resets their password. It recommended that users enable two-factor authentication and regularly change their password.

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In December 2022, the firm disclosed an incident from that October where user API keys had been leaked, leading to unauthorized trades on victim accounts.

Sorokin and 3Commas initially denied a breach had taken place and instead suggested its customers had been phished. It later relented and Sorokin admitted there had been an API leak from 3Commas.

3Commas users affected by the API leak called for refunds and an apology for being gaslighted.

“We regret that such an incident has taken place,” said Sorokin on the latest incident. He added that 3Commas is improving its security to prevent or limit similar future incidents.

3Commas did not immediately respond to Cointelegraph’s request for comment.

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Nifty News: Trader nabs 800 ETH by baiting a bot, NFT thefts slow and more

A trader walked off nearly $1.5 million richer after tricking a bot copying his trades to buy a slew of NFTs at a markup.

NFT trader's $1.5M bot chess move

YouTuber and nonfungible token (NFT) trader Hanwe Chang said he scored 800 Ether (ETH), around $1.5 million, by tricking a rival trader’s bot into buying his own inflated NFTs.

In an Aug. 5 X (Twitter) post, Chang said he noticed a bot was copying his bids on the NFT marketplace Blur and decided to trick them.

An NFT-focused account A Raving Ape speculated that from a separate, anonymous wallet Chang purchased multiple Azuki NFTs sharing the same background color.

Knowing bots were copying his trades, Chang placed an inflated bid on the NFTs held in his anonymous wallet from his publicly-known hanwe.eth wallet.

Once a bot automatically copied the inflated bid, Chang accepted it from his anonymous wallet and was able to palm off the NFTs at a significant markup.

Seemingly, the owner of the bot known as elizab.eth responded to Chang’s post claiming the funds were stolen and offered to discuss a 10% bounty if the funds were returned.

Chang’s on-chain move triggered discussion over its legality.

Lawyer Gabriel Shapiro said he thinks elizab.eth “might have good legal claims” to get their ETH back from Chang’s trick — but only if they hire a skilled litigation attorney.

NFT volumes nearly halves over July

NFT volumes have continued to slide in the ongoing bear market, having sank by almost half over July.

Figures from NFT data aggregator CryptoSlam show U.S. dollar sales volume decreased nearly 42% over July with the month starting off with $22 million in daily volume before sinking to $12.8 million on July 31.

Weekly NFT sales with black line depicting U.S. dollar sales volume. Source: Cryptoslam!

July’s drop comes after a significant rally in late June where daily sales volumes peaked at nearly $58.5 million on June 27, the largest trading day since March 16’s $61.9 million figure.

Royalties from NFTs are also biting creators. A July 25 report from Nansen said out of the 699,816 ETH in royalties paid to NFT projects, just 9.4% of the figure was in the first half of 2023.

Nansen said the effective fee rate for royalties has seen a significant downtrend — average royalties in 2022 were 2.5% which as of July 2023 had dropped to 0.6%, a 98% drop.

Slow month for NFT thefts

On the other hand, NFT-related thefts have seen their slowest month in 2023.

Figures by blockchain security firm PeckShield shared on Aug. 6 show around $1.7 million worth of NFTs were stolen in July. The figure marks a 31% decrease from June.

PeckShield said half of the stolen NFTs were sold within less than three hours, or 165 minutes, on marketplaces such as Blur and OpenSea after being nabbed.

Blur had the highest amount of stolen NFTs sold, with over 67% while OpenSea had just under 20% sold through its platform, PeckShield claimed.

Just over $41.5 million worth of NFTs have been stolen in 2023 up until the end of July. February was the biggest month for NFT thieves, where they stole $16.2 million worth of tokens.

Gary Vee’s NFT project also steps into sneaker trend

VeeFriend’s, the NFT project by entrepreneur and internet talking head Gary Vaynerchuck has joined the latest craze of NFT-related sneakers.

On Aug. 4 VeeFriend’s announced its partnered with Reebok to launch a limited edition sneaker only available to those holding an alpaca-related NFT as part of the collection.

The shoe looks like any other aside from a few changes. The tongue of the shoe depicts the original handdrawn version of VeeFriend’s alpaca NFT and the NFT project’s logo appears in place of Reebok’s.

Related: NFT gas usage shows downward trend, signals shift in landscape

It’s the third sneaker-NFT project in recent weeks. In late June Dior put up a new line of sneakers that offered an NFT replica and NFT’s came embedded in Puma’s recent sneaker collection.

Other Nifty News

The Federal Bureau of Investigation (FBI) has finally caught on that criminals are hijacking social media accounts and posing as legit NFT and crypto space figures, posting a warning of the trend on Aug. 4.

NFT protocol JPEG’d confirmed 5,495 ETH worth about $10 million was returned by the Curve Finance hacker, who received a bounty of 610.6 ETH, or $1.1 million.

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Telegram Trading Bot Token Rips by More Than 124% This Week As Project Unveils Early Access to New Terminal

Telegram Trading Bot Token Rips by More Than 124% This Week As Project Unveils Early Access to New Terminal

A new Telegram trading bot crypto project has ripped by more than 124% this week after it opened up a new trading terminal for early access. Unibot (UNIBOT), which bills itself as “the Fastest Telegram Uniswap Sniper,” hit its all-time high of $195 at one point on Thursday evening. The 176th-ranked crypto asset by market […]

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Crypto trading bot borrows $200M for a $3 gain

One community member praised the bot, saying that “profit is profit,” while another said that the event highlights how bad the bear market is.

A crypto trading bot programmed to perform arbitrage trades made various complex moves within the Ethereum blockchain — including taking a $200 million flash loan — to secure a mere $3.24 profit. 

On June 14, blockchain analysis firm Arkham Intelligence shared a breakdown of the bot’s movements. According to the firm, the transaction was made by an arbitrage bot that uses flash loans.

The analysis firm explained that the reason the Dai (DAI) amount borrowed was high is that MakerDAO’s “DssFlash” contract allows zero-fee borrowing on any amount of DAI, with a limit of $500 million. This means that the bot can make uncollateralized loans as long as the assets loaned will be paid within the same block.

According to Arkham, the bot borrowed 200 million DAI from the decentralized finance (DeFi) protocol MakerDAO and then supplied the funds to the AAVE DAI Market. Following this, 1.349 Wrapped Ether (WETH) was borrowed against the funds. The WETH was then used to purchase Threshold Network (T) tokens on the Curve exchange and was sold at the liquidity protocol Balancer.

With these transactions, the bot gained a total of 0.019 Ether (ETH), which was valued at around $33 at the time of the trade. However, the transaction fees for the trade were around $28.76, with an additional $1 sent to the block builder. This left the bot with only $3.24 in profit.

Related: Sandwich trading bots lose bread and butter in $25M exploit

While the risk seemed high compared to the amount gained, a community member applauded the bot saying that "profit is profit." Meanwhile, a Twitter user said that doing all this for a small profit shows how bad the bear market is.

Meanwhile, not all bots are working on low-profit trades. On April 20, a bot operator gained more than $1 million by using sandwich attacks on memecoin traders. A majority of the profits came from targeting trading activity from memecoins like Pepe (PEPE) and Wojak (WOJAK).

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Privacy of 100,000 Crypto Traders Compromised As Trading Bot Firm Confirms Hack After Warning From Changpeng Zhao

Privacy of 100,000 Crypto Traders Compromised As Trading Bot Firm Confirms Hack After Warning From Changpeng Zhao

Crypto trading bot 3Commas is confirming allegations that its platform has been compromised and user data was leaked. 3Commas CEO Yuriy Sorokin affirmed the security breach, saying that API (application program interface) keys have been stolen after the chief executive of Binance, Changpeng Zhao, warned investors about the situation. “We saw the hacker’s message and […]

The post Privacy of 100,000 Crypto Traders Compromised As Trading Bot Firm Confirms Hack After Warning From Changpeng Zhao appeared first on The Daily Hodl.

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Bot-traded futures, explained

How do bot-traded futures work, what are the top tips for success, and what are the common pitfalls to avoid? This explained article reveals all.

How popular are trading bots in the crypto market right now?

According to TradeSanta, demand for trading bots has increased substantially of late.

The latest figures from the platform’s website suggest that it now has more than 100,000 active users, and over 3,200 active trading bots. More than 3.8 million deals have also been completed since the software launched.

A range of technical indicators are provided by TradeSanta, and the software also allows large volumes of crypto to be bought and sold without causing prices to spike or drop. Trading bots can also be launched in just five minutes using pre-set templates — and alternatively, users have the freedom to build customized strategies from scratch.

Futures and other derivatives have become increasingly popular in the world of cryptocurrencies as the industry matures. TradeSanta is hoping to provide the technology that allows traders to make the most of this new trend and enjoy levels of automation that are commonplace in stocks, bonds, commodities and forex.

Learn more about TradeSanta

Disclaimer. Cointelegraph does not endorse any content or product on this page. While we aim at providing you all important information that we could obtain, readers should do their own research before taking any actions related to the company and carry full responsibility for their

Which exchanges support futures trading bots?

Several trading platforms now support futures trading bots via an API, including Binance.

Binance Futures enables traders to use leverage and enter into short and long positions alike. It offers trading pairs that are linked to the USDT stablecoin, and the exchange’s size helps to deliver high levels of trading volume and liquidity. Data from Skew shows that Binance is the biggest platform in terms of futures volumes over a 24-hour period — exceeding the likes of Huobi and OKEx.

Users can hedge positions by shorting cryptocurrencies during bear markets — or go long if they believe that major digital assets are set to appreciate further in the future. All of this can provide a crucial form of risk management for traders in the volatile word of crypto.

One cloud cryptocurrency trading software platform that supports Binance Futures is TradeSanta. But given how bot-traded futures are best suited to those who have higher levels of experience, support for this exchange is only provided through its top subscription package, which provides an unlimited number of bots.

Can trading bots be more accurate than human traders?

Yes — and better than this, they can also remove the emotion from trading.

Automated trading bots can crunch a staggering amount of data every second and come to rational conclusions far faster than human traders can. Whereas a seasoned trader can only digest one chart at once, these bots can capture a snapshot of the whole market instantly. They also cut the time it takes to enter and exit a position.

But accuracy isn’t the only advantage here. Emotions can sometimes get in the way of traders making a rational decision. Thankfully, bots are immune to fear and excitement. This means that a futures trader can set clear objectives in advance, and they won’t have to make snap decisions that they may later regret. And with the Fear & Greed Index flashing scores of “extreme greed” in recent weeks as the crypto markets surged, bots can also allow traders to protect their profits in the blink of an eye.

What are the biggest risks traders need to be aware of?

Futures trading, especially with margin, is riskier than spot trading.

Although bots can have their uses, traders need to be aware that — if the markets aren’t acting as they anticipated — their positions can be liquidated a lot faster if leverage is being used.

These cutting-edge solutions also can’t make decisions on which contracts to trade, meaning that you’ll need to play your role.

If you use a particular exchange for futures trading, you’ll need to find a trading bot provider that offers compatibility through an API. And last but by no means least, you should check these computer programs are fast and reliable. A malfunction at an inconvenient time could cause sizable losses and significant amounts of frustration.

Are there any top tips for successful trading?

Remember that you need to constantly analyze how the markets are moving.

When you’re using a bot to trade futures, you can’t set everything up and forget about it for days on end. Trading bots are designed to enhance the experience, but aren’t a substitute for good old-fashioned human involvement.

Traders who use bots are typically recommended to check their positions at least once a day, as well as how the market is performing. That way, they’ll be able to use their judgement to make tweaks to their strategies. It’s also essential to set stop-loss orders above liquidation prices.

Many trading bot providers offer tools that make it easier for traders to keep track of sudden, significant developments in the markets. For example, some deliver Telegram notifications when action is needed, and mobile apps so strategies can be accessed on the move.

What’s different about using a bot to trade futures?

They allow you to gain exposure to the crypto markets 24 hours a day, seven days a week.

One of the biggest complaints that traders normally have is how they are constantly stuck in front of their screens.

The world of cryptocurrencies never stops, and the market can make big moves at any time… irrespective of whether it’s a Wednesday afternoon or at 3am on a Sunday. This makes it inevitable that sleep-starved traders will miss out on opportunities sometimes.

Trading bots can be the solution here. They allow experienced professionals to set their desired parameters for entering and exiting positions — eliminating the need for them to be in front of their computer nonstop. It also makes it easier for traders to execute multiple orders at the same time.

This technology is also popular in the spot market, where it can be advantageous for forex traders as well as cryptocurrency specialists.

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